Buy Jubilant FoodWorks; target of Rs 825: Emkay Global Financial

Emkay Global Financial' research report on Jubilant FoodWorks

Growth outperformance continued with ~16% India growth in Q2, and JUBI delivered a margin-led 4%/45% EBITDA beat in India/International (vs our estimates). Despite a high base, JUBI indicated continued momentum in Oct-25 and is targeting mid-teen topline growth (5-7% LFL). Encouragingly, the LFL construct of 5-7% has a 1-2% contribution from better realizations (vs only volumes earlier), which, along with focus on reducing the margin drag from emerging segments (~250bps in FY25), should help meet the guided outlook of 200bps margin expansion (FY24-28). With 15.6mn MAUs growing strongly at ~27%, JUBI has gained healthy initial traction from reputed corporates for its new pilot on advertisement revenues (high-margin). International performance is also running ahead of expectations, with ~30% EBITDA growth in Q2. JUBI has corrected 25% in CY25TD and the India business (Intl business EV: Rs85bn; 22x TP multiple) is now trading at 28x/23x FY27/28E EBITDA, which provides an attractive entry opportunity, in our view.

Outlook

We maintain Buy on JUBI with unchanged TP of Rs825 (34x Sep-27 EBITDA), on assuring management commentary around delivering mid-teen topline growth along with gradual margin gains – both have been key investor concerns in our view.